Cabo Verde - Economic Growth Support Programme - Phase I

Economic Growth Support Programme Phase I (PACE-I) is the first phase of a series of two programme-based budget support operations. One of the reasons it was initiated is that Cabo Verde faces several challenges that could hamper its economic growth in the medium term. PACE-I aims to consolidate the gains of previous operations and contribute to sustained economic growth by improving the efficiency of public investment and supporting the promotion of private sector development. The programme is a continuation of previous budget support operations whose results have helped to improve not only the public finance management system, but also public corporate governance and the promotion of private investment. This programme is structured around two complementary components. The first component, which focuses on the effectiveness of public investment, will make it possible, through major structural reforms, to: (i) improve public corporate governance and the public investment framework; and (ii) modernize the framework of public-private partnerships. As for the second component, the support to promote private sector development will focus on: (i) improving the business environment; and (ii) supporting entrepreneurship and the formalization of informal activities.